Introduction to Investment Securities and Opportunities
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Questions and Answers

What role do investment opportunities play in the world of business ventures?

  • They are limited to venture capital investments.
  • They are irrelevant for individual wealth growth.
  • They determine the trajectory of individual wealth and business growth. (correct)
  • They only involve placing capital in stocks.

    • Which of the following is not considered an investment opportunity according to the text?

  • Assurance and insurance
  • Venture capital investments
  • Stocks and bonds
  • Real estate (correct)

    • What types of securities are traded on the Johannesburg Securities Exchange (JSE)?

  • Real estate assets
  • Only bonds
  • A variety of financial instruments such as stocks and bonds (correct)
  • Only stocks

    • What is the purpose of unit trusts in investment schemes?

    <p>To pool investors' money into a single fund managed by professionals</p> Signup and view all the answers

    Which type of shares are mentioned as investment options in the text?

    <p>Bonus shares</p> Signup and view all the answers

    What distinguishes ordinary shares from preference shares?

    <p>Preference shares have no voting rights.</p> Signup and view all the answers

    How do businesses benefit from trading on the Johannesburg Securities Exchange (JSE)?

    <p>By offering a way to raise capital through stocks and bonds</p> Signup and view all the answers

    In what way do mutual funds differ from direct investments in businesses?

    <p>Mutual funds do not involve pooling of money.</p> Signup and view all the answers

    What type of investment do government retail bonds represent?

    <p>Safe, low-risk investments with fixed returns</p> Signup and view all the answers

    What is the difference between compound interest and simple interest?

    <p>Compound interest is the interest earned on interest, while simple interest is the interest earned on the principal amount only.</p> Signup and view all the answers

    Which factor is NOT mentioned as important when making investment decisions?

    <p>Investor's age</p> Signup and view all the answers

    What is the relationship between risk and return in investments?

    <p>Higher risks are usually associated with higher potential returns.</p> Signup and view all the answers

    Which of the following investment options is considered to have the highest risk?

    <p>Venture Capital</p> Signup and view all the answers

    What is the primary advantage of a 32-Day Notice Account?

    <p>Higher returns than a regular savings account</p> Signup and view all the answers

    What is the main purpose of endowments and retirement annuities?

    <p>To build wealth over the long-term through low-risk investments</p> Signup and view all the answers

    Which of the following is NOT mentioned as a factor to consider when making investment decisions?

    <p>Diversification</p> Signup and view all the answers

    What is the primary advantage of investing in a managed portfolio?

    <p>Lower risk through diversification of investments</p> Signup and view all the answers

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